Armstrong v. Kimberly Clark Corporation

CourtDistrict Court, N.D. Texas
DecidedMarch 14, 2024
Docket3:20-cv-03150
StatusUnknown

This text of Armstrong v. Kimberly Clark Corporation (Armstrong v. Kimberly Clark Corporation) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Armstrong v. Kimberly Clark Corporation, (N.D. Tex. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

MELISSA ARMSTRONG, et al., individually and on behalf of other similarly situated persons,

Plaintiffs, Civil Action No. 3:20-CV-3150-M v. LEAD CASE

KIMBERLY-CLARK CORPORATION, (Consolidated With Civil Action No. 3:21-CV- 01484-M)

Defendant. MEMORANDUM OPINION AND ORDER

Before the Court is Plaintiffs’ Motion for Final Approval of Settlement (ECF No. 126) and Plaintiffs’ Motion for Approval of Attorneys’ Fees, Expenses and Service Awards (ECF No. 123). Having considered the Motions, the supporting memoranda of law, the Settlement together with all exhibits and attachments thereto, the record, and the arguments made during the Final Approval Hearing, the Court GRANTS Plaintiffs’ Motion for Final Approval of Settlement and GRANTS Plaintiffs’ Motion for Approval of Attorneys’ Fees, Expenses and Service Awards. The Court will enter Judgment consistent with this Order. I. BACKGROUND On October 16, 2002, Plaintiffs Kimberly Armstrong sued Defendant Kimberly- Clark Corporation on behalf of a putative class, seeking damages based on purchases of Wipes contaminated with , a bacteria. ECF No. 1. In November 2020, a similar complaint was filed by Dawn Rothfeld in the Eastern District of New York, and in June 2021, that casew as transferred to this District. On July 9, 2021, the action was consolidated with the earlier filed case. ECF No. 36; , Case No. 3:21-cv-1484, ECF No. 35 (N.D. Tex. July 9, 2021). On September 22, 2023, Plaintiffs filed the Unopposed Motion for Preliminary Approval

and to Direct Notice of Proposed Settlement to the Class. ECF No. 117; ECF No. 117-1 (“Settlement”). On September 27, 2023, the Court granted Plaintiffs leave to file the First Amended Consolidated Class Action Complaint and granted preliminary approval of the class action (“Preliminary Approval Order”), and appointed Kroll Settlement Administration LLC as Settlement Administrator. ECF No. 120. Now, Plaintiffs ask that the Court (1) certify the Settlement Class for purposes of entering judgment on the Settlement under Federal Rule of Civil Procedure 23(e); (2) finally approve the Settlement as fair, reasonable, and adequate; and (3) approve their requests for $3,547,157 in attorneys’ fees, $102,843 in expenses, and a $2,500 service award to each of the Settlement Class Representatives. On March 6, 2024, the Court conducted a Final Approval Hearing.

The Settlement requires Kimberly-Clark to pay a non-reversionary amount of at least $6,000,000 in new dollars, and up to $13,500,000, to pay valid claims to Settlement Class Members who purchased recalled Cottonelle Flushable Wipes. Together with the $4,000,000 Kimberly-Clark previously paid as part of its refund program, the Settlement will ensure that at least $10,000,000, and up to $17,500,000, will be spent in connection with reimbursing customers who purchased recalled lots of Cottonelle Flushable Wipes. Pursuant to the Settlement, each Representative Plaintiff will receive a $2,500 service award. Class members who submit a valid claim with proof of purchase are eligible for reimbursement for up to 100% of the amount for which they have proof of purchase. If they cannot provide proof of purchase, they are eligible for reimbursement up to $5 per household. Under the Settlement, each Settlement Class Member, including Plaintiffs, are deemed to have completely and unconditionally released, forever discharged, and acquitted Kimberly-Clark and the Released Parties from all Released Claims as defined by and laid out more fully within the Settlement Agreement.1 The Settlement Class Members and Plaintiffs are barred and

permanently enjoined from asserting, instituting, or prosecuting, either directly or indirectly, any Released Claim, as provided in the Settlement Agreement. The Settlement does not release claims of Class Members who experienced personal injuries in connection with purchase or use of affected Cottonelle Flushable Wipes. See Settlement ¶ 2.29. In the Final Approval Motion, Plaintiffs state the Settlement Administrator and Amazon mailed and emailed 4,827,542 notices between November 9, 2023, and November 13, 2023. Opt-out notices were received from 24 Class Members, listed in Exhibit A. No objections were received. The Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332(d)(2), and

personal jurisdiction over the Parties, Settlement Class Members, and Released Parties. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b)(1) and (b)(2).

1 The Settlement Agreement defines “Released Claims” as meaning any and all claims or causes of action of every kind and description, including any causes of action in law, claims in equity, complaints, suits or petitions, and any allegations of wrongdoing, demands for legal, equitable or administrative relief (including, but not limited to, any claims for injunction, rescission, reformation, restitution, disgorgement, constructive trust, declaratory relief, compensatory damages, consequential damages, penalties, exemplary damages, punitive damages, attorneys’ fees, costs, interest or expenses) that the Releasing Parties (as defined in the Settlement Agreement) had, have or may claim now or in the future to have (including, but not limited to, assigned claims and any and all “Unknown Claims” as defined in the Settlement Agreement) that were or could have been asserted or alleged arising out of the same nucleus of operative facts as any of the claims alleged or asserted in the Action, including but not limited to the facts, transactions, occurrences, events, acts, omissions, or failures to act that were alleged, argued, raised or asserted in any pleading or court filing in the Action, including but not limited to those concerning the purchase or use of Wipes. “Released Claims” do not include personal injury claims related to the purchase or use of Wipes. See Settlement Agreement ¶ 2.29. II. CLASS CERTIFICATION For the reasons stated below, the Court finds that it is proper to certify, and hereby does certify, for settlement purposes only, a Settlement Class pursuant to Federal Rule of Civil Procedure 23(b)(3). The Settlement provides for a Settlement Class defined as follows:

All persons in the United States and United States territories who purchased recalled lots of Cottonelle Flushable Wipes (“Wipes”) between February 7, 2020 and December 31, 2020 for personal use and not for resale, and any persons residing in the same household. Settlement ¶ 3.1. The Settlement expressly excludes from the Settlement Class: (1) Kimberly-Clark, its subsidiaries, parent companies, successors, predecessors, and any entity in which Kimberly- Clark or its parents have a controlling interest and their current or former officers, directors, and employees; (2) the Court and its officers and employees; and (3) any Settlement Class Members who submitted a valid Request for Exclusion on or before the Opt-Out Deadline. Id. ¶ 3.2. A. Legal Standard A settlement class must meet the requirements for class certification as if the case were to be litigated. See Amchem v. Windsor, 521 U.S. 591, 620 (1997). Rule 23 “demand[s] undiluted, even heightened, attention in the settlement context . . .

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Armstrong v. Kimberly Clark Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/armstrong-v-kimberly-clark-corporation-txnd-2024.